The federal budget proposes to increase the withdrawl limit for first-time buyers using the Home Buyer's Plan from $20,000 to $25,000 (per individual).

Under this program, first-time buyers are allowed to withdraw funds from their RRSP, tax-free, to put towards the down payment on a home. Amounts withdrawn under the HBP must be repaid over a 15 year period, starting the second year following the year of the withdrawl.

1st Time Buyer's Tax Credit

The budget proposes a 15% credit that would be applied to a $5,000 amount, and would provide up to $750 in tax relief to reduce costs associated with first home purchases.

First-Time Buyer's Land Transfer Tax Credit

First-Time buyers will be given a rebate of up to $2,000 on the Land Transfer Tax.

This rebate is available to those who buy both new construction and resale homes.